Trustee objections

We have received a letter from the Trustee stating "Objection to Claim of Exemptions". The objections referred to our two ATV's which were mistakenly listed on the Exemption form but are also listed on the Debtor's Intent form to "surrender" which we intend to do. The Trustee is also objecting to our 2003 car, "exempt exceeds the amount allowed". I guess I misunderstood the explanation of vehicle exemptions? We live in Idaho and the exemption is 1500.00 per debtor, 3000.00 total. Our car is valued at 11,000.00 and we owe 13,000.00. We also listed our older van which is paid off and valued at 800.00. I guess I thought the 2000.00 difference between what the value of the car is and what we owed would be part of the exemption so I thought the total vehicle exemption would be 2800.00 (with the van)?? But re-reading the description of the vehicle exemption I can't exempt the car because the "value" is 11,000.00??? Since the Trustee is most likely right in his objections, I probably don't need to respond within the 20 days they gave me since I have nothing to object to, right? Will we still be able to keep the car? Our payments are still current or will they make us sell it? We did list it on the bakruptcy forms to re-affirm not surrender. Do I have anything to worry about? Any help would be appreciated!! Thanks. Sheri

[AttorneyOney]

It's always possible to file amended schedules under Rule 1009(a). There is generally a fee involved. This is how one generally cures a mistake in the filing. A trustee might reasonably request to be paid for his time and trouble in bringing a motion that would have been unnecessary had the schedules been correct or amended to be correct.

You may want to closely read the Idaho exemption statutes. Sometimes these statutes allow a debtor to exempt up to a certain amount in a single vehicle. When a married couple files a joint petition, it's actually TWO cases that are administratively combined. Under the kind of exemption statute I mentioned, each spouse can exempt one (different) car.

An exemption applies to EQUITY in an asset. A debtor's interest in collateral for an undersecured loan (where more is owed than the collateral is worth) is purely nominal and should be scheduled as such. Attorneys customarily also schedule an exemption of nominal value to preserve the right to redeem the collateral or to strip off judicial liens.